The Money Issue

Welcome to The Head + Heart? Newsletter,

Each edition explores the latest trends in human behavior in the marketplace that capture our attention. In this newsletter, we dive into generational wealth transfer, the evolving aspirations of elite college students focusing on high-paying careers, Gen Z's impact on consumer healthcare, and women's transformative influence on the CPG landscape. Each article underscores trends and opportunities for organizations to capitalize on these shifts.

Let's dive in!

The Great Wealth Transfer

What's Going On: The impending transfer of wealth from Baby Boomers to younger generations is set to reshape the financial landscape. The inter-generational wealth exchange will bring a new understanding of how wealth is viewed.

Why It Matters: By 2045, there will be a $53 trillion transfer of wealth from Boomers to Gen Z and Millennials.

How It's Impacting Consumer Behavior: Gen Z and Millenials are pushing against the status quo of traditional investing. Younger generations see their new wealth as an opportunity to drive necessary change in the world that aligns with their values. They also demonstrate herd behavior. Highly influenced by peer behavior and social media, they are more interested in investing in cryptocurrencies, NFTs, and alternative assets.

So What: Financial organizations have an opportunity to reframe how they market to these new generations. From advertising via social channels to creating transparent investment lineups, firms must challenge their old ways of acquiring and retaining clients.

Redefining the Dream Job

What's Going On A recent study reveals that students at elite colleges are increasingly prioritizing high-paying jobs over careers with social impact. This trend marks a significant shift from Millennials' focus on meaningful work.

Why It Matters: 42% of Gen Z battles with depression and feelings of hopelessness. In The New York Times article, a professor expresses concern with how students are underestimating the importance of work in their lives, calling out affecting forecasting errors: "What [this] gets wrong is you spend 15 years at the hedge fund, you're going to be a different person. You don't just go work and make a lot of money; you go work and you become a different person."

How It's Impacting Consumer Behavior:?This trend highlights cognitive dissonance. We often shape our values and beliefs to justify our actions. When our behaviors and values are incongruent, we often shift the values to justify our behaviors.

So What: Organizations can attract top talent by investing in robust employee experience benefits that emphasize financial growth and stability. How will your organization attract Gen Z talent, and how can your employee experience be changed to meet the wants and needs of the next generational workforce?

In Influencers We Trust

What's Going On: According to Klarna Insights, Gen Z is the only generation in which influencers hold more significant social media purchasing sway than retailers.

Why It Matters: 52% of Gen Zs are influenced to make purchases through influencers they follow online. For comparison, that is 43% higher than the percentage of those who follow and purchase from retailers.

How It's Impacting Consumer Behavior:?Gen Z uses social proof to turn social media into another buying channel, highlighting how people tend to conform to behaviors perceived as normal or popular within their social group.

So What: Much like financial institutions, retailers must keep a pulse on how Gen Z shops. Currently, they are placing more trust in influencers because they find them more relatable and believable than traditional retailers. This trust is changing the way we all shop and drastically changing the landscape of social media as we know it.

The She-Economy

What's Going On: Women are projected to control 75% of discretionary spending in the next five years and increasingly influence the consumer packaged goods (CPG) landscape, driving innovation and shaping market trends.

Why It Matters: ADWEEK found that brands that ignore Gen X women leave trillions of dollars on the table. Women older than 50 drive $15 trillion in spending—27% of all consumer spending in the U.S.

How It's Impacting Consumer Behavior: The focus on women's preferences and needs in product development and marketing strategies demonstrates the importance of inclusivity and representation in driving consumer engagement.

So What: CPG companies should prioritize representation in their product development and marketing efforts. Understanding and addressing all women's unique needs and preferences can increase brand loyalty and market share.

A Common Thread

Whether it's wealth management, career choices, healthcare, or consumer goods, aligning with the values and preferences of different demographics is crucial. Brands must find the similarities and differences among their user segments and continuously innovate and evolve service offerings to meet their consumers' needs.

How do you see these trends impacting your industry? Share your thoughts in the comments! Don't forget to subscribe and share The Head + Heart? Newsletter for more insights on behavior design trends. We'll see you back here next month with a new round-up of who's crushing it regarding impactful and innovative solutions rooted in behavior design.

Until then, keep Dreaming with Direction?

Rêve Consulting

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